AXION Reports 2014 Financial Results and Current Progress

Revenues Grew to $14.4 Million; Stronger Demand in 2015

News provided by

AXION International Holdings, Inc.

Apr 10, 2015, 08:30 ET

ZANESVILLE, Ohio, April 10, 2015 /PRNewswire/ -- AXION International Holdings, Inc. (OTCQB: AXIH), a leader in recycled polymer technologies used to produce ECOTRAX® composite rail ties/sleepers and STRUXURE® composite building products today announced its financial results for 2014 and early 2015 progress.

AXION continued its business transformation with a strong close to 2014 in terms of strategic product revenue, expanded product lines, strengthened customer portfolio, increased high-value orders, and improving product-line profitability. Included are the Company's notable accomplishments in 2014 and highlights from 2015, as it enabled commercial advances through improved operational capabilities, and a recognition of current challenges as the Company meets escalating market demand.

2014 Accomplishments and Highlights

  • Reported $14.4 million in revenues for 2014 compared to $6.6 million for the prior year
  • Increased sales of engineered products to $8.8 million from $5.9 million for 2013
  • Completed supply agreement with a Class 1 railroad, delivering in excess of 104,000 rail ties over the three-year period
  • Successfully transitioned Zanesville facility to manufacture engineered products, and deemphasized the reprocessed plastics business to provide significantly increased margins concurrent with the formation of laminated mat production
  • Sustained focus on aligning production capacity with current orders, projected demand, and customer commitments
  • Continued aggressive cost-reduction efforts and managed the challenge of reducing and absorbing production expenses in two facilities, as production in each facility increases to optimum levels in 2015
  • Completed exchange of outstanding warrants for shares of common stock to prepare for future public or private financing activities, resulting in a $19.1 million non-cash charge to general and administrative expenses
  • Increased market adoption and penetration of STRUXURE® construction mat line and structured large volume industry relationships with upstream and midstream energy service companies, facilitating the production ramp up in 2015
  • Diversified customers and applications across product lines, including concentration on premium rail installations in the ECOTRAX® rail products division
  • Engineered and supplied multiple wetland walkway projects installed in North America that combined two composite technologies, extending a product line segment for use across several applications
  • Established a significant international position through distribution in Oceania, expanded test programs in southeast Asia, and developed a strategic partnership in eastern Europe
  • Established Canada-based distribution agreement for the sale of STRUXURE® construction mats across Canada, creating foundation for expanded laminated mat product line

To view and download AXION's complete Form 10-K, click here.

2015 Highlights

AXION's Chief Executive Officer Claude Brown, Jr. said, "As I wrote in my letter to shareholders, 2014 was a year of 'transformation and growth.' The Company concentrated on increasing production capacity to meet elevated demand for its engineered products. In focusing on high-demand, high-value opportunities, we were also able to continue to diversify our base of customers. We are mindful of our successes in 2014, including revenues for engineered products increasing 49%. We also embrace our operational challenges that are related to increasing production capacity to meet market expectations, and the objectives outlined in my 2014 letter hold true today."

With AXION's focus, initiated in late 2014, on increasing production capacity to meet commercial demand for its engineered products, the Company must also reconcile its need for sufficient capital to support the expansion with the means of its current private investor group.  The increases in production capacity and inventory levels created a need for capital that has outpaced the investment expectations of its primary investors. The Company requires and is actively seeking additional capital to take it through its current phase of growth.  Consequently, AXION has adjusted capacity expansion projects, engaged in discussions with our industry partners, realigned manufacturing activities with existing customer obligations, and continues to actively manage its inventory to meet all customer expectations and commitments.

The Company expects its existing near-term capitalization efforts to proceed as planned.  AXION has engaged strategic and financial advisors to hasten the process of developing additional sources of public or private capital investments as it manages strong demand for its expanded product offering. Significant market penetration and adoption has marked the beginning of 2015, as well as substantial commercial success in the railway and construction industries. Current 2015 orders and contractual customer commitments exceed 2014's total cumulative revenue.

"In August, 2014, we solidified our transformation plans, creating a definitive path forward with the decision to limit participation in the recycled plastics processing business, allowing for the total reconfiguration of our Ohio-based facility to produce extended-life STRUXURE® construction mats," commented Mr. Brown. "By design, these strategic moves, concurrent with the evolution of AXION's premium railway business, have placed the Company in a position to complete its commercial and operational transformation by midyear and reach fiscal stability as 2015 closes. Our transformation is an evolutionary process, and the foundation that we established in late 2014 has enabled a strong start to the year and will validate our newly enhanced and sustainable business model by late 2015."

About AXION International Holdings, Inc.
AXION (OTCQB: AXIH) creates innovative structural polymer solutions, engineering sustainable products and systems that provide improved long-term value, consistent performance, and reduced maintenance costs. AXION develops its solutions for the construction, transportation, and energy industries. Visit www.AXIH.com.

Forward-Looking Statements
This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause AXION's actual results to differ materially from those currently anticipated, including the availability of materials at favorable pricing, sufficient manufacturing capability, and the risk factors identified in AXION's filings with the Securities and Exchange Commission.

Logo - http://photos.prnewswire.com/prnh/20131107/NY13246LOGO

SOURCE AXION International Holdings, Inc.

Related Links

http://www.axionintl.com

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

icon3
440k+
Newsrooms &
Influencers
icon1
9k+
Digital Media
Outlets
icon2
270k+
Journalists
Opted In
GET STARTED